Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Investor Day (November 2010)
38 slides from Alma Media Oyj's investor day presentation, Nov 24, 2010
Slide 1: Strategic directions
Strategic directions Kai Telanne, President & CEO Alma Media Corporation Capital Markets Day November 24, 2010, Helsinki 1 24.11.2010
Slide 2: Contents
Strategic directions Contents Since one year ago... Strong position in the domestic market Near-term outlook of media transformation Creating value, creating growth 2 24.11.2010
Slide 3: Since one year ago…
Since one year ago… 3 24.11.2010
Slide 4: Alma has been renewing operations
Alma has been renewing operations 4 24.11.2010
Slide 5: Some examples of the renewal
Some examples of the renewal • Renewal of several regional newspapers. • The cooperation with Arena Partners in national marketplaces business. • Replacement investment decision of the Tampere newspaper printing facility (50 MEUR). • Printing and distribution business unit, Alma Manu, started. • Sma
Slide 6: Acquisitions and divestments
In 2010 also: Acquisitions and divestments Arena Interactive, 35% share Kotikokki.net, from 40% to 65% share Kateetti Oy, 24 % share online services Marknadspriser.se, 60% share publishing Kauppalehti 121 Vuodatus.net Intermedia Titanik Kokkolan Partners Helsinki Sanomat Janakkalan Motors24.ee Objek
Slide 7: Advertising market slowly picking up
Advertising market slowly picking up 7 24.11.2010
Slide 8: Advertising sales change 10/2009 - 10/2010
Advertising sales change 10/2009 - 10/2010 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% -10 % -20 % -30 % Advertising sales total, chg % Newspaper advertising, chg % Internet advertising, chg % * Source: TNS Media Intelligence 8 24.11.2010
Slide 9: Advertising change by branch
Advertising change by branch Total market; change from previous year Q1 2010 vs 2009 Q2 2010 vs 2009 Q3 2010 vs 2009 Retail -1,5 % Retail -1,3 % Retail 7,5 % Motor v. -0,9 % Motor v. 3,2 % Motor v. 23,7 % Food &… -7,4 % Food &… 7,2 % Food & bev. 1,4 % Entert 0,0 % Entert -8,4 % Entert -1,3 % Houses
Slide 10: People have been busy consuming media
People have been busy consuming media 10 24.11.2010
Slide 11: Online keeps attracting more visitors
Online keeps attracting more visitors 5 000 000 4 500 000 4 000 000 3 500 000 3 000 000 2 500 000 2 000 000 1 500 000 1 000 000 500 000 0 2009 2010YTD Aamulehti Marketplaces Kauppalehti.fi Iltalehti.fi Telkku.com and Vuodatus.net total Annual average visitors numbers. Overlapping use not taken into
Slide 12: People continue to read printed media
People continue to read printed media Readers (’000) Change, % Iltalehti 654 +1.6 Aamulehti 310 -1.6 Kauppalehti 229 -0.4 Satakunnan Kansa 134 +3.9 Lapin Kansa 85 -4.5 Kainuun Sanomat 58 -3.3 Pohjolan Sanomat 53 -7.0 Readership change 2009. The gross readership of all daily newspapers declined 1.8 %
Slide 13: Print circulations in slow decline
Print circulations in slow decline CHANGE CHANGE TREND 2007-2008 2009-2010 2010-2011 Alma Media’s -0,5% Expected stabilising regional newspapers slight decline. Stabilising after controlled Kauppalehti -9,1% cutting of free circulation copies and economic downturn. Downward trend continues due to Il
Slide 14: We have kept our numbers healthy
We have kept our numbers healthy 14 24.11.2010
Slide 15: Net sales and EBIT development
Net sales and EBIT development 15 24.11.2010
Slide 16: Sustained financial performance
Sustained financial performance 16 24.11.2010
Slide 17: Key figures 2005 - 2009
Key figures 2005 - 2009 Without one-time items Net sales MEUR EBIT, MEUR & margin (%) 400 60 18 % 16,1 % +9,0% +3,7% 15,4 % 350 14,7 % 16 % -9,8% 50 52,9 14,0 % 341,2 13,9 % 14 % 328,9 300 46,4 47,7 301,9 307,8 285,9 40 42,1 42,6 12 % 250 10 % 200 30 8% 150 20 6% 100 4% 10 50 2% 0 0 0% 2005 2006 200
Slide 18: Key ratios in 2010
Key ratios in 2010 IFRS Equity ratio, % Gearing, % ROE% ROI% 80 0 60 50 45 47,0 70 69,6 -5 50 40 67,2 48,6 60 35 37,3 40 42,7 50 -10 30 40 30 25 -15 20 30 -17,1 20 15 20 -20,5 -20 10 10 10 5 0 -25 0 0 Q4 09 Q3 10 Q4 09 Q3 10 Q3 09 Q3 10 Q3 09 Q3 10 18 24.11.2010
Slide 19: Net debt, MEUR
Net debt, MEUR IFRS 30 19,8 20 10 MEUR 0 -3,2 -10 -7,9 -14,5 -20 -16,5 -21,7 -30 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 19 24.11.2010
Slide 20: Strong position in the market
Strong position in the market 20 24.11.2010
Slide 21: Alma Media in line with the market
Alma Media in line with the market Alma Media vs. market Market Alma Media Change, % Q1-Q3 10 * Q1-Q3 10 Newspapers total 1,9 0,6 ** Magazines -3,3 - Television 9,5 - Radio 6,4 - Internet 33,6 26,0 TOTAL 5,3 5,1 * Source: TNS Media Intelligence ** Newspapers segment (excl. online services), Kauppale
Slide 22: Market for display and classified advertising growing fast
Market for display and classified advertising growing fast DISPLAY + CLASSIFIED SEARCH DIRECTORIES 17.1 MEUR / 39.8 MEUR/ 52 % 18.9 MEUR/ 23 % GROWTH + 25 % 25 % Growth Growth +5% -9,8 % Source: IAB Finland 22 24.11.2010
Slide 23: At Alma, the share of online sales is growing
At Alma, the share of online sales is growing 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% 2005 2006 2007 2008 2009 Q3 YTD 2010 Excl. online sales Online sales 23 24.11.2010
Slide 24: Near-term outlook of media transformation
Near-term outlook of media transformation 24 24.11.2010
Slide 25: A complex set of revenue streams
A complex set of revenue streams 25 24.11.2010
Slide 26: Alma’s Revenue Model Mosaic
Alma’s Revenue Model Mosaic Revenue model used widely In Alma Revenue model tested in some parts of Alma Revenue model under development Single copy Print Banner Classified Free Subscriptions Customer Niche Magazines sales advertising advertising online newspapers magazines newspapers advertising Di
Slide 27: Different media channels, different game
Different media channels, different game Content for a Local content Fast news News in brief - Multimedia reader News analysis Topical issues right now news media Debate Entertainment content Meaningfulness Web TV, video Location-based experience Entertainment Services and other Content by Content b
Slide 28: Creating value, creating growth
Creating value, creating growth 28 24.11.2010
Slide 29: Earnings already above 2009 level
Earnings already above 2009 level 0,14 1,6 0,12 1,4 0,10 1,2 0,08 1,0 0,72 0,65 0,06 0,13 0,8 0,11 0,04 0,6 0,02 0,4 0,64 0,66 0,00 0,2 -0,01 -0,02 0,0 Q3 09 Q3 10 Q4 09 Q3 10 EPS wo onetime Retained earnings Onetime items Restricted equity 29 24.11.2010
Slide 30: Healthy dividend over the years
Healthy dividend over the years 1,00 0,90 0,90 0,80 0,70 0,65 0,65 0,60 0,50 0,40 0,40 0,30 0,30 0,20 0,10 0,00 2005 2006 2007 2008 2009 Dividend/share Earnings/share* Cash Flow from operations/share* * continuing operations Dividends and effective dividend yields 2005-2009 2005 2006 2007 2008 2009
Slide 31: Our goal
Our goal is to grow through creating value for our customers 31 24.11.2010
Slide 32: Alma is a pure publishing company, or is it?
Alma is a pure publishing company, or is it? Publishing business 270 MEUR Digital Services for consumers and businesses 40 MEUR 32 24.11.2010
Slide 33: Dynamics of the business environment 1/3
Dynamics of the business environment 1/3 • E-services and e-commerce grow as the usage of internet The society is becomes more regular, the array of services expands and as the digitalizing, consumers gain confidence to e-commerce and e-payments. e-commerce • Lack of time and ease of buying support
Slide 34: Dynamics of the business environment 2/3
Dynamics of the business environment 2/3 • The structural changes in media advertising caused by the recession remain partially permanent. The share of • The significance of targeting in advertising increases. digital Measuring of advertising gets more efficient, supporting advertising digital adver
Slide 35: Dynamics of the business environment 3/3
Dynamics of the business environment 3/3 • Product and service development utilizing the resources of the whole personnel is needed, together with investing in the competence development and the organization’s ability to Growth is enabled by renew itself. development, • Stakeholders involved in deve
Slide 36: Strategic cornerstones
Strategic cornerstones RENEWAL NEW BUSINESS AREAS Transformation of media Growth from digital consumer and business services COOPERATION The utilization and strengthening of the sources of competitive advantage 36 24.11.2010
Slide 37: Redefining Alma Media
Redefining Alma Media DIGITAL BUSINESS SERVICES • Information, analysis PUBLISHING and other online • Regional media services • Business media • Solutions for • Afternoon marketplaces Publishing Digital business tabloid media and marketing services • Mobile services and IPTV support Common core Digi
Slide 38: Questions?
Questions? ~~ F